In retail establishments, it is often found that the retailer does not have the means to print (encode) MICR (Magnetic Ink Character Recognition) characters on a check. In such a case, the retailer typically pays the bank(s) a fee for printing and verifying these characters. In those cases where the retailer has purchased an encoding machine to encode the checks, the encoding is performed as a separate task, at a later time than the sale itself. In either case, the subsequent printing of MICR characters on ae check is wasteful both of time and money for the retailer. The present invention suggests that it is more useful to print these characters at the point of sale (POS), and actually provides a new method and apparatus for processing checks at the point of sale.
The present invention pertains to a point of sale (POS) printer capable of encoding and verifying MICR characters on checks. More particularly, the invention provides the retailer with the capability for printing MICR characters, and for printing these characters in the AMOUNT field of the check. (Hereinafter, the word "encode" shall be used to mean "to print the amount of the sale in magnetic ink characters in the AMOUNT field of the check.")
This invention allows a retailer to save money and/or time in one of two ways:
(a) Having the POS printer of this invention, a retailer can print and verify these characters at the time of sale. This saves the retailer money, while saving banks the time to perform this procedure. PA1 (b) A retailer having a POS printer need not purchase an encoding machine to encode the checks. Neither need he or she encode the checks as a separate task at a later time than that of the sale. The retailer having the POS printer of this invention saves the time and labor by performing this task at the point of sale, not as a separate function performed at a later time. In addition, the retailer can reconcile checks sooner allowing for earlier availability of funds (reduced "float" time ) than when the bank must encode the checks.
The POS printer of this invention includes an encoding module that magnetizes and reads the account and bank information from the existing magnetic characters on the check. The encoding module prints the characters according to ANSI.sup.1, ISO.sup.2, or other standards using an ink having magnetic particles embedded therein. The POS printer magnetizes and reads these characters after they are printed, in order to verify that the correct AMOUNT has been encoded onto the check. The encoding module may comprise a magnet to magnetize the characters; a read head to read the signal waveform from each character; electronic circuitry to analyze these waveforms; and a print mechanism with the capability of using magnetic ink for printing the characters. Certain read heads, such as DC-biased read heads, do not require a magnet to pre-magnetize the characters. In such a case, the encoding module may comprise a DC-biased read head, electronic circuitry and a magnetic ink printer.
Our copending U.S. patent application, Ser. No. 08/944,155, describes a check processing procedure, and is hereby incorporated by reference.